Tag Archive | "Badra"

Gazprom Neft gets First Batch of Iraq Oil

Gazprom Neft, the operator of the Badra field development project, has received the first batch of Kirkuk grade oil from the Iraqi government.

The crude oil has been given to the company in compensation for its investment in the field development. 500 thousand barrels (about 70 thousand tonnes) of oil was delivered in the first batch from SOMO (State Oil Marketing Organization), the Iraq state corporation, in the Turkish port of Ceyhan.

Gazprom Neft’s buyer is a large Asian company, and the crude oil is being delivered on FOB* terms.

At the end of November 2014 the basic condition of the contract for development on the Badra field was fulfilled: within 90 days of commissioning, oil was being delivered into the main pipeline at a rate of at least 15 thousand barrels per day.

Stable production at this level has enabled the investors to start receiving compensation for the costs incurred, by obtaining part of the oil produced on the field. Crude oil should be transferred to members of the consortium on a quarterly basis, and each member should sell on its share of oil independently.

Commercial oil shipment from Badra began in August 2014. Prior to this, the entire infrastructure required for production and transportation of crude oil was established at the field over a period of just three years. Three wells are currently operating on Badra and three more are being drilled. Production at the field is 15-17 thousand barrels per day.

(Source: Gazprom Neft)

Posted in Oil & GasComments (6)

Gazprom Neft to Conduct Seismic Survey

Gazprom Neft is to conduct a 2D seismic survey on the south-eastern section of the Halabja block.

The technical equipment and personnel required for the survey are currently being transferred from the south-western section, where the company has already successfully completed a survey spanning 225 linear km. 2D seismic surveys covering approximately 870 linear km are scheduled to be conducted on the Halabja block by the end of the year.

In 2014, a 2D seismic survey covering 130 linear km was conducted on the block. The first exploration well is expected to be drilled in 2015/2016.

Mikhail Kholodov, CEO of Gazprom Neft Middle East, said:

“The Halabja block has until now undergone very little geological study. Conducting seismological surveys is the first step towards identifying the optimal location for an exploration well and these provide a significant amount of new information on the structure of the block.”

Gapzrom Neft is involved in four projects in Iraq, three of which are located in Kurdistan.

Gazprom Neft holds an 80% interest in the Halabja and Shakal blocks (the remaining 20% is held by the Kurdistan Regional Government). In August 2014 the drilling of two exploration wells began at the Shakal block, which are currently undergoing testing.

Gazprom Neft holds a 40% interest in the Garmian block and will become the operator of the project in 2015. Detailed appraisals of the field and preparation for its full-scale development are ongoing at the block. The Kurdistan Regional Government is currently considering a preliminary plan for the block’s development.

Gazprom Neft’s fourth project in Iraq is the development of the Badra oilfield located in the Wasit Province, Eastern Iraq. Preliminary estimates indicate total oil reserves at the Badra field at three billion barrels. Gazprom Neft operates the project and holds a 30% interest. Commercial production of oil at the Badra field began in August 2014.

(Source: JSC Gazprom Neft)

Posted in Oil & GasComments (9)

Gazprom Starts Oil Deliveries from Badra

By John Lee.

Russia’s Gazprom Neft, the operator of the Badra oil field (pictured) in Iraq, has announced that first oil from the field is now being delivered to Iraq’s main pipeline system for transfer to the export terminal in Basra, on the Persian Gulf.

Current deliveries from Badra to the pipeline stand at over 15,000 barrels of oil per day and this level should be maintained until the end of 2014.

According to the service contract with the Government of Iraq, the consortium of investor companies will begin receiving a share of the oil produced at the field after a period of 90 days following launch of commercial supply.

All of the oil produced in southern Iraq, including at Badra, is Basrah Light oil. The Iraqi State Oil Marketing Organization (SOMO) is responsible for oil sales and each quarter will be delivering a share of oil to the investor companies to reimburse their initial project costs.

Once these project costs have been covered, the investor companies will receive remuneration in kind for ongoing development at the rate of $5.5 of oil per barrel produced. Each investor company will be selling their share of oil independently.

First oil from the Badra field was produced in December 2013. Final commissioning at the field and testing of production and transportation infrastructure began in May 2014. Two wells are currently in production at the field and a further three wells are being drilled under a contract with the Chinese company ZPEC. According to the service contract production at the field will achieve 170,000 barrels of oil per day.

Alexander Dyukov, Chairman of the Management Board of Gazprom Neft, said:

Over the period of just a few years, a consortium of companies led by Gazprom Neft has fully prepared Badra, one of the most complex geological field structures in Iraq, for full-scale commercial development.

“This is the first major international project in upstream the company has implemented from scratch. The unique experience gained during this project will contribute to our development of future projects both in Russia and internationally“.

The field is being developed by Gazprom as lead partner (30% stake), along with Korea’s KOGAS (22.5%), Malaysia’s Petronas (15%), Turkey’s TPAO (7.5%), and Iraq (25%).

(Sources: Gazprom Neft, KOGAS)

Posted in Oil & GasComments Off

Gazprom Begins Production at Badra

By Patrick M Schmidt.

The Iraqi Ministry of Oil has announced that Gazprom Neft, a division of the Russian state-owned Gazprom, had begun production at Badra oilfield in the eastern province of Wasit.

Oil flow from Badra has started on Monday to fill the oilfield storages in preparing to feed the export,” said Ministry of Oil spokesman Asim Jihad.

Badra is expected to average 15,000 barrels of oil per day in the short term, but experts suggest its production figures could rise to 170,000 barrels of oil per day by 2017.

(Source: Reuters)

Posted in Oil & GasComments Off

Gazprom Neft Begins Production at Badra

On 31 May, Gazprom Neft began production at the Badra oilfield in Iraq.

The central gathering station (CGS) is currently undergoing complex testing of its crude oil processing system. Testing will be completed in three months once enough oil has been accumulated for commercial production to begin. The Badra field will then be ready to reach planned production levels of 15 thousand barrels per day.

The Badra oil field is located in Wasit Province in Eastern Iraq

New infrastructure for the field’s commercial development has been put in place. The CGS’s first line has been constructed with a capacity of 60 thousand barrels per day and in March 2014 the Badra field was connected to the 165–kilometre-long main Iraqi oil pipeline system.

Production in the field will reach its peak of 170 thousand barrels per day (around 8.5 million tonnes per year) in 2017 and then remain the same for a period of 7 years.

Vadim Yakovlev, First Deputy CEO of Gazprom Neft said:

Development at the Badra field is one of Gazprom Neft’s first international assets in oil production. We launched this project from scratch and over a short period of time have completed all of the complex work necessary for the industrial development of the Badra field.

“The experience of being an operator on this project has further strengthened Gazprom Neft’s expertise, which will contribute to work on other new projects, for example in the Near East and other regions where the company is exploring opportunities for further development.

(Source: Gazprom Neft)

Posted in Oil & GasComments Off

Iran Announce Work at Azar-Badra Field

By John Lee.

Iran have announced that drilling will begin next year at the Azar oil field, which is known as Badra on the Iraqi side of the border. On the Iraqi side, Badra is operated by Gazprom Neft.

Saying that initial activity should yield some 30,000 bpd with a later target of 65,000 bpd, the work will be done by an Iranian consortium after a deal with CNPC fell through and the Iranians accused the Chinese company of “dragging their feet.”

On both sides of the border the shared oil field has some 400 million barrels of recoverable reserves. It is one of 3 oil fields that straddle the border and are jointly shared by the two countries, the others being Yadavaran and Azadegan.

(Source: UPI)

Posted in Oil & GasComments Off

Stirling Group Trains Young Iraqi Firemen

August 2013 saw the start of a new recruitment drive in the south-eastern Wassit Province, when Health, Safety, Security and Environment service provider, Stirling Group, was contracted to recruit, train and run a dedicated Fire Service to the Gazprom-operated Badra oil field.

Over 400 local Iraqis between the age of 18 and 30 were chosen to take part in assessment centres in Al Kut in order to gain a place on the intensive fire-fighting training programme, beginning in Iraq and completing at the specialist, Fire Service College at Moreton-in-Marsh, UK.

The assessment centres tested applicants’ IQ, Arabic literacy and physical aptitude, with an accompanying interview with their future Fire-Fighting instructors. This recruitment process ensured that the recruits were committed to learning the essential skills required to become a qualified fire fighter.

The successful 69 trainees then began their basic fire and English language training in Iraq, whilst their UK visas were under process. The in-country training was conducted by their Fire Team leaders, who are a mixture of expatriate and bilingual professional fire fighters. This core team also accompany the trainees throughout their training in the UK and will be employed as management for the dedicated Fire Service to the Badra Field.

The group of instructors and trainees have formed a strong bond given the intensive nature of the training programme and the uniqueness of the opportunity. For many of the trainees their flight to the UK was their first journey out of Iraq and, indeed, on a plane, which made for an interesting flight from the Middle East to Great Britain in December.

The trainees were then chaperoned to the Fire Service College, which would be their home until March 2014. During this time, trainees receive a monthly salary upon successful completion of their training, which will increase when they become full-time fire-fighters on back in Iraq.

Posted in Education & Training, SecurityComments Off

Gazprom Connects Badra to Main Pipeline

Gazprom Neft has completed laying, testing and connecting a 165 km oil pipeline from the Badra field, which the Company operates in Iraq, to the Gharraf oilfield (Nasiriyah district, Iraq).

With infrastructure already in place at Gharraf, completion of the pipeline from Badra means that the field is now connected to the main Iraqi pipeline system.

The new infrastructure for transporting raw materials from Badra has the capacity to transport 204,000 barrels per day, around 10 million tonnes per year, and can now supply oil to the export terminal at the city of Basra.

The Badra-Gharraf pipeline has two underwater transits, including one crossing the river Tigris, and passes over dozens of canals and irrigation systems. For increased operating security, a system to detect leaks and shut off damaged sections and a power supply system running on solar cells will work along the entire length of the pipleline.

Automated systems ensure constant monitoring of the oil transit and real-time management of the pipeline from the Badra field. Gazprom Neft has successfully completed hydrodynamic testing of all sections of the pipeline and the system has been checked for robustness and integrity.

Gazprom Neft produced its first oil at Badra in December 2013 as part of operating tests on well BD4. Work is currently continuing at the site to develop the infrastructure necessary to launch production, which is scheduled for the first half of 2014.

The construction of a central gathering station (CGS) with a capacity of 170,000 barrels per day is under way. The first CGS line will be coming into operation imminently, with a capacity of 60,000 barrels per day. Work has also started on a complex gas treatment plant (UKPG) with the capacity to handle some 1.5 billion cubic metres per year.

(Source: Gazprom Neft)

Posted in Oil & GasComments Off

IBN Newsletter 'FREE Weekly Subscription'

Advertise with IBN